Over the years, technology is evolving in such a way that new solutions to the different problems that affect companies in relation to management, security, operations and transactions are constantly emerging. This advance in technology, also known as Digital Transformation, aims to generate greater efficiency in operations and offer a better user experience.

Most of the emerging technological innovations are more effective together. This happens with Blockchain and IoT solutions, but: Don’t you know what Blockchain technology is? Don’t you know the Internet of Things? Don’t worry because in this article we will explain you what they are and what are the benefits of having both technologies.

What are we talking about when we refer to the Blockchain?

Blockchain can be defined as a set of technologies that enable a secure, decentralized and synchronized record of digital transactions without the need for third party intervention.

This disruptive technology is carving out an increasingly important niche in the world of cybersecurity. Perhaps the concepts of bitcoin and cryptocurrencies is what comes to mind when thinking about Blockchain. However, Blockchain technology is applied in other technological processes such as in data recording and verification, payments and transactions, data storage or validation of digital identity, among others.

How does Blockchain technology work?

Here is an example: A person (A) wants to send money to another person (B), this transaction is represented in the network as a block, the block is transmitted to the whole network, those in the network approve the transaction and say it is valid, the block can be added to the chain providing transparency and finally the transaction is carried out and money from A reaches B.

As you can see, this technology perfectly fulfills the function of record, preserve and protect all the information of any digital operation.

What is IoT or Internet of Things?

The Internet of Things (IoT) is a network made up of different physical objects that we live with every day (machines, clothes, household appliances…) that exchange and share data over the Internet. This exchange and communication between the devices connected to the Internet of Things network is done using APIs (Application Programming).

The Internet of Things is a breakthrough in the world of technology and it makes possible for any user to be connected on multiple devices from anywhere and anytime. However, it works if there are devices with the necessary hardware to connect to the Internet and that can support the telecommunications infrastructure.

The IoT has several functions. It is responsible for bringing the virtual world together with the real world, assisting in enterprise security, collecting data from equipment, and building IoT applications.

Benefits of Blockchain and IoT solutions

Today, Blockchain technology has much to do with IoT. IoT devices store a large amount of data provided on-chain. Being on-chain is when Blockchain technology can work to authenticate and protect the data being managed by the devices.

Blockchain and the Internet of Things are addressable and capable of making a history of connected equipment. In this way, they open up a range of possibilities with which to solve problems in the future.

When these two technologies are combined, we are talking about Blockchain and IoT solutions, which can provide a number of benefits. For example, it allows coordination between devices, tracking millions of devices that are connected, solving everything related to stability, privacy and reliability, and performing transactions. Others are:

• Elimination of intermediaries.
• Increased trust.
• Allows sharing the use of several files.
• Integrity in the process.
• Increased security.
• The user’s identity is always private.
• Transparency.
• Guarantees robustness and stability of resources.

Blockchain and IoT, with Realsec

At Realsec, together with our parent company (Utimaco), we make available to customers the portfolio of cybersecurity solutions for Blockchain and IoT environments.  This offers secure storage of your keys and sensitive data in a single centralized location, an enterprise secure key manager (ESKM) and much more.